Small finance banks are a special segment of the banking industry, operating under the guidelines of the Reserve Bank of India. The purpose of a small finance bank is to financially extend the banking sector and its services to underserved and unserved sections of the country. This generally includes marginal and small farmers, unorganised industries, small and micro industries and small business units. Investing in small finance banks can be useful if you are planning to open a fixed deposit account to save and grow your money. Let us understand the different aspects of such banks along with small finance bank FD rates.
What are Small Finance Bank FD?
Investment in fixed deposits is considered one of the most secure and risk-free options to save money for a significant tenure. Apart from universal commercial banks, small finance banks offer attractive offers on FDs for depositors. Small bank FD rates are generally higher compared to different universal banks. It helps investors to get high returns on their money after the successful completion of the maturity period.
Moreover, RBI regulates and guides small finance banks. Deposit Insurance and Credit Guarantee Corporation (DICGC) offers insurance of up to Rs. 5 lakh on the principal amount. This makes your FDs a safe option to fulfil future financial goals. Also, senior citizens get additional benefits in FD rates and the option to choose interest pay-out tenure. This results in a regular flow of income for retirees or senior citizens.
10 Best Small Finance Bank FD Rates 2024
Several small finance banks in India offer attractive offers on fixed deposit schemes and competitive interest rates. Here is a list of small finance banks offering fixed deposits to all types of customers.
1. Utkarsh Small Finance Bank Fixed Deposit
Utkarsh Small Finance Bank was established in 2016 with the purpose of offering microfinancing to unserved sections of the nation. The bank offers general and senior citizens the opportunity to book an FD account with a high interest rate and flexible tenures. Utkarsh Small Finance Bank FD rates are as follows:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 45 days | 4.00% | 4.60% |
| 46 days to 90 days | 4.75% | 5.35% |
| 91 days to 180 days | 5.50% | 6.10% |
| 181 days to 364 days | 6.50% | 7.10% |
| 365 days to 699 days | 8.00% | 8.60% |
| 700 days to less than 2 years | 8.25% | 8.85% |
| 2 years to 3 years | 8.50% | 9.10% |
| Above 3 years to less than 4 years | 8.25% | 8.85% |
| 4 years to 5 years | 7.50% | 8.10% |
| Above 5 years to 10 years | 7.00% | 7.60% |
2. Shivalik Small Finance Bank Fixed Deposit
This bank is known as India’s first small finance bank, incorporated in 1998. With Shivalik Bank’s fixed deposit scheme, you get a flexible tenure option and a convenient option to prematurely withdraw your deposit. As of 15 September 2023, the Shivalik SF Bank FD interest rate applicable for different tenures of FD is given below:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 14 days | 3.75% | 4.25% |
| 15 days to 29 days | 4.00% | 4.50% |
| 30 days to 90 days | 4.50% | 5.00% |
| 91 days to 180 days | 5.00% | 5.50% |
| 6 months to less than 9 months | 6.50% | 7.00% |
| 9 months to less than 12 months | 6.50% | 7.00% |
| 12 months to 18 months | 8.10% | 8.60% |
| 18 months 1 day to 24 months | 8.00% | 8.50% |
| 24 months 1 day to 36 months | 8.00% | 8.505 |
| 36 months 1 day to 60 months | 7.00% | 7.50% |
| 60 months 1 day to 120 months | 6.75% | 7.25% |
| Tax saver FD 5 Years | 7.00% | 7.50% |
3. Ujjivan Small Finance Bank Fixed Deposit
Ujjivan Small Finance Bank was established with the purpose of serving customers who do not get proper banking opportunities to build a sustainable financial future for all. Keeping customers as their focus, they offer multiple FD schemes with attractive interest rates, with flexible tenure and tons of other benefits. Check the Ujjivan Small Finance Bank FD rates below:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 Days to 29 Days | 3.75% | 4.25% |
| 30 Days to 89 Days | 4.25% | 4.75% |
| 90 Days to 179 Days | 4.75% | 5.25% |
| 6 Months to 9 Months | 5.50% | 6.00% |
| 9 Months 1 Day <12 months | 6.50% | 7.00% |
| 12 months | 8.25% | 8.75% |
| 12 months 1 day to 13 months | 6.50% | 7.005 |
| 13 Months 1 day to 559 days | 8.00% | 8.50% |
| 80 Weeks(560 Days) | 8.25% | 8.75% |
| 561 Days to 989 Days | 7.50% | 8.00% |
| 990 Days | 7.75% | 8.25% |
| 991 Days to 60 Months | 7.20% | 7.70% |
| 60 months 1 Day to 120 Months | 6.50% | 7.00% |
4. Unity Small Finance Bank Fixed Deposit
Unity Small Finance Bank ensures ease and access to banking for all individuals. By catering themselves as a fully digital bank with time, application for fixed deposits is easy. FDs start from a nominal amount of ₹1,000, with a flexible tenure of up to 10 years. Below is a table for Unity Small Finance Bank FD rates:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 14 days | 4.50% | 4.50% |
| 15 days to 45 days | 4.75% | 4.75% |
| 45 days to 60 days | 5.25% | 5.75% |
| 61 days to 90 days | 5.50% | 6.00% |
| 91 days to 164 days | 5.75% | 6.25% |
| 165 days to 6 months | 5.75% | 6.25% |
| Above 6 months to 201 days | 8.75% | 9.25% |
| 202 days to 364 days | 6.75% | 7.255 |
| 1 year | 7.35% | 7.85% |
| 1 year 1 day | 7.35% | 7.85% |
| 1 year 2 days to 500 days | 7.35% | 7.85% |
| 501 days | 8.75% | 9.25% |
| 502 days to 18 months | 7.35% | 7.85% |
| Above 18 months to 1000 days | 7.40% | 7.90% |
| 1001 days | 9.00% | 9.50% |
| 1002 days to 3 years | 7.65% | 8.15% |
| Above 3 years to 5 years | 7.65% | 8.15% |
| Above 5 years to 10 years | 7.00% | 7.50% |
5. Fincare Small Finance Bank Fixed Deposit
This bank was established in 2017 and has a vision to include underbanked and unbanked customers to avail banking services. They target individuals, microenterprises and microentrepreneurs. Fincare Bank’s fixed deposit scheme has lucrative interest rates for general as well as senior citizens for different periods. Let us check the table below for Fincare SF Bank FD rates:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 14 days | 3.00% | 3.60% |
| 15 days to 30 days | 4.50% | 5.10% |
| 31 days to 45 days | 4.75% | 5.35% |
| 46 days to 90 days | 5.25% | 5.85% |
| 91 days to 180 days | 5.75% | 6.35% |
| 181 days to 365 days | 6.50% | 7.10% |
| 12 months to 15 months | 7.50% | 8.10% |
| 15 months 1 day to 499 days | 7.75% | 8.35% |
| 500 days | 8.11% | 8.71% |
| 501 days to 18 months | 7.75% | 8.35% |
| 18 months 1 day to 21 months | 8.01% | 8.61% |
| 21 months 1 day to 24 months | 8.01% | 8.61% |
| 24 months 1 day to 749 days | 8.05% | 8.65% |
| 750 days | 8.51% | 9.11% |
| 751 days to 30 months | 8.05% | 8.65% |
| 30 months 1 day to 999 days | 8.00% | 8.60% |
| 1000 days | 8.31% | 8.91% |
| 1001 days to 36 months | 8.00% | 8.60% |
| 36 months 1 day to 42 months | 8.25% | 8.85% |
| 42 months 1 day to 48 months | 7.50% | 8.10% |
| 48 months 1 day to 59 months | 7.50% | 8.10% |
| 59 months 1 day to 66 months | 8.00% | 8.60% |
| 66 months 1 day to 84 months | 7.00% | 7.60% |
6. Suryoday Small Finance Bank Fixed Deposit
Suryoday Small Finance Bank has come a long way from a microfinance company to a small bank, with presently 2 million customers associated with them. You can fulfil your short-term or long-term financial plans with a fixed deposit offered by this bank at a competitive interest rate with a wide range of tenure. Check the table for the latest Suryoday SF Bank FD rates:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 45 days | 4.25% | 4.75% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 6 months | 5.00% | 5.50% |
| Above 6 months to 9 months | 5.50% | 6.00% |
| Above 9 months to less than 1 Year | 6.00% | 6.50% |
| 1 Year | 6.85% | 7.35% |
| Above 1 Year to 15 months | 8.25% | 8.75% |
| Above 15 months to 2 years | 8.50% | 9.00% |
| Above 2 years to 3 years | 8.60% | 9.10% |
| Above 3 Years to less than 5 Years | 6.75% | 7.25% |
| 5 Years | 8.25% | 8.75% |
| Above 5 years to 10 years | 7.25% | 7.75% |
7. Equitas Small Finance Bank Fixed Deposit
This small finance bank actively helps businesses, families, individuals and societies with their financial requirements seamlessly. With a wide range of services available, fixed deposit is an important service available with Equitas Bank for individuals wanting to save and grow money securely and within a fixed tenure. The latest Equitas Small Bank FD rates are stated below.
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 14 days | 3.50% | 4.00% |
| 15 days to 29 days | 3.50% | 4.00% |
| 30 days to 45 days | 4.00% | 4.50% |
| 46 days to 62 days | 4.50% | 5.00% |
| 63 days to 90 days | 4.50% | 5.00% |
| 91 days to 120 days | 5.25% | 5.755 |
| 121 days to 180 days | 5.25% | 5.75% |
| 181 days to 210 days | 6.25% | 6.75% |
| 211 days to 270 days | 6.25% | 6.75% |
| 271 days to 364 days | 6.25% | 6.75% |
| 1 year | 8.20% | 8.70% |
| 1 year 1 day | 8.00% | 8.50% |
| 1 year 2 days to 443 days | 8.20% | 8.70% |
| 444 days | 8.50% | 9.00% |
| 445 days to 18 months | 8.20% | 8.70% |
| 18 months 1 day to 2 years | 7.75% | 8.25% |
| 2 years 1 day 887 days | 8.00% | 8.50% |
| 888 days | 8.25% | 8.75% |
| 889 days to 3 years | 8.00% | 8.50% |
| 3 years 1 day to 4 years | 7.50% | 8.00% |
| 4 years 1 day to 5 years | 7.25% | 7.75% |
| 5 years 1 day to 10 years | 7.25% | 7.75% |
8. AU Small Finance Bank Fixed Deposit
AU Small Finance Bank started its journey as a small finance bank in 2017 and is presently considered one of the most well-known small finance banks in the financial market of India. With different options to save money, investing in FDs is a more favourable option among most people. Here is a table with the interest rates of AU Small Finance Bank fixed deposits:
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 Days to 1 Month 15 Days | 3.75% | 4.25% |
| 1 Month 16 Days to 3 Months | 4.25% | 4.75% |
| 3 Months 1 Day to 6 Months | 5.00% | 5.50% |
| 6 Months 1 Day to 12 Months | 6.75% | 7.25% |
| 12 Months 1 Day to 15 Months | 7.75% | 8.25% |
| 15 Months 1 Day to 18 Months | 7.50% | 8.00% |
| 18 Months 1 Day to 24 Months | 7.50% | 8.00% |
| 24 Months 1 Day to 36 Months | 8.00% | 8.50% |
| 36 Months 1 Day to 45 Months | 7.75% | 8.25% |
| 45 Months 1 Day to less than 60 Months | 7.25% | 7.75% |
| 60 Months to 120 Months | 7.25% | 7.75% |
9. Jana Small Finance Bank Fixed Deposit
Jana Small Bank’s fixed deposit scheme helps you earn money on your investment at regular intervals and ensures growth in money after a fixed period. The bank has best-in-class interest rates on FDs, with the option to apply for it using an online banking method. The below table provides Jana SF Bank fixed interest rates for different tenures.
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 7 days to 14 days | 3.00% | 3.50% |
| 15 days to 60 days | 4.25% | 4.75% |
| 61 days to 90 days | 5.00% | 5.50% |
| 91 days to 180 days | 7.00% | 7.50% |
| 181 days to 364 days | 7.75% | 8.25% |
| 365 days | 8.00% | 8.50% |
| Above 1 year to 2 years | 8.25% | 8.75% |
| Above 2 years to 3 years | 8.50% | 9.00% |
| Above 3 years to less than 5 years | 7.25% | 7.75% |
| 5 years | 7.25% | 7.75% |
| Above 5 years to 10 years | 6.50% | 7.00% |
10. Capital Small Finance Bank Fixed Deposit
When you apply for a fixed deposit with Capital Small Finance Bank, you get the flexibility to invest money for a period of 15 days to a maximum of 10 years. Moreover, if you want to take a loan against your FDs, Capital Bank allows that for up to 92.5% of the deposit amount. Let us check the table below for FD rates in small finance banks.
| Tenure | Interest Rate for General Customers (p.a.) | Interest Rate for Senior Citizens (p.a.) |
|---|---|---|
| 15 Days to 30 Days | 3.50% | 4.00% |
| 31 Days to 45 Days | 3.50% | 4.00% |
| 46 Days to 89 Days | 4.00% | 4.50% |
| 90 Days to 179 Days | 4.75% | 5.25% |
| 180 Days to less than 1 Year | 5.50% | 6.00% |
| 1 Year to less than 5 Years | 7.15% | 7.65% |
| 5 Years and up to 10 Years | 7.10% | 7.60% |
| 12 months | 7.50% | 8.00% |
| 400 days | 7.40% | 7.90% |
| 600 days | 7.40% | 7.90% |
| 900 days | 7.40% | 7.90% |
Features and Benefits of Investing in a Small Finance Bank FD
Below are some of the major features as well as benefits of investing your money in a small finance bank fixed deposit scheme.
- Small finance bank FD rates are often more competitive compared to traditional banks, making FDs an attractive investment option.
- Investors can choose from a range of FD tenure options, allowing them to align their investments with their financial goals and liquidity needs.
- Small finance banks typically have lower minimum deposit requirements, making FDs accessible to a wider range of investors.
- Investors can opt for interest payouts at regular intervals (monthly, quarterly, or annually) or choose to reinvest the interest for compounded returns.
- FDs provide predictable and stable returns, making them suitable for risk-averse investors looking for capital preservation.
- Small finance banks are regulated by the Reserve Bank of India (RBI) and adhere to strict banking norms, ensuring the safety of your principal amount.
- Including small finance bank FDs in your investment portfolio can diversify risk and balance your overall asset allocation.
- By investing in small finance banks, you support their mission of financial inclusion by providing banking services to underserved areas and communities.
Things to Consider Before Investing in Small Finance Bank FD
A few things you must consider before applying for a fixed deposit scheme with small finance banks. They are as follows.
- Small finance banks FDs are generally favourable for individuals wanting to invest for a short period. If you want a short-term investment plan, these FDs will be feasible for your financial plans.
- Always compare interest rates of different small finance banks before investing your money in fixed deposits. Such comparison can help you make informed financial decisions and help you get higher returns after maturity.
- Interest payout tenure for FDs is an important factor to look into while booking an FD. Choose a non-cumulative option if you want interest at an interval of monthly, half-yearly, quarterly or annually. Opt for a cumulative scheme if you want the total interest amount during maturity.
- Before investing in FDs, you must know all the conditions related to premature withdrawal. During financial emergencies, you may have to withdraw your FDs. In such scenarios, if your small finance bank does not allow premature withdrawal, it can be a big problem.
Conclusion
Overall, investing money in a small finance bank for fixed deposits is a low-risk and secure option to save and grow your money for a significant tenure. Always remember to check small finance bank FD rates before booking your account to get a tentative idea about your returns after the maturity period. Moreover, this is a suitable FD investment option due to its high growth and returns, making it a valuable addition to your investment portfolio.
FAQs
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
